WBHO reports a 20.2% decline in diluted HEPS to 581.5c for the 6 months ended December 2013 from 729.0c a year ago.
Aveng says that for the 6 months ended December 2013‚ it anticipates EPS and HEPS will decline by between 20% and 25% in relation to the comparative period.
South African construction firms are are well placed to compete for mining and energy contracts in Africa, says Global Credit Rating.
Business updates by construction firms show their order books have generally bulked up or remained stable.
WBHO says its order book increases to R23.5bn by the end of April from R22.8bn as at December 2012.
Construction and engineering group Wilson Bayly Holmes - Ovcon Ltd (WBHO‚ WBO) said on Friday that its order book had increased to R23.5 billion by the end of April from R22.8 billion as at December 2012.
Projects in Australia account for 51% of the order book with Building and Civil accounting for 31% and Roads and Earthworks 18%.
The group has been able to consistently secure new projects in all segments of the business other than in the West African Region.
“The volatility of iron ore and gold commodity prices has slowed development of mines in the region. WBHO is the preferred contractor for certain civil packages on the Mayoko Iron Ore Project in the Republic of Congo. The formal award of the first package has been received with a commencement date of the 6 June 2013. The award of the remaining packages should alleviate the work procurement pressures in West Africa‚” the group said.
The building divisions in all regions’ margins in the Building and Civil Engineering division remained under pressure but were performing well in the current environment. “The civil division has been affected by the slowdown in mining related infrastructure but has been successful in securing work in Zambia and Botswana.”
The Roads and Earthworks division had generally performed well in all the African regions it operated in. Payments for the Free State roads projects were being received in terms of the agreement with the Free State Provincial Government.
Turning to its Australian operations‚ WBHO said the Probuild business had been negatively impacted by three projects which were behind programme‚ resulting in excessive costs to complete. However‚ the balance of the business‚ in a very competitive environment‚ had performed adequately.
“The positive outcome of possible claims relating to these projects will not be resolved in the financial year ended 30 June 2013‚” the group noted.
“WBHO Civil’s execution of projects has improved but the business is affected by the slowdown in mining related infrastructure activities in Australia‚” it added.
Subject to Competition Commission approval Capital Africa Steel has bought back 10% of its shares from Carlmac. If approved by the Competition Commission WBHO shareholding will go above 50% resulting in the Capital Africa Steel business being consolidated by WBHO.
WBHO has also not yet reached agreement with the Competition Commission with respect to its Fast Track Settlement investigations into historical anti-competitive practices in the construction industry. “WBHO is not able to confirm the accuracy of the administrative penalty provision accounted for in the prior year‚” the group said.